RETIREES are set for a pay rise within just DAYS as the amount they’re paid in state pension goes up.
The state pension amount increases each year to keep up with the cost of living – it’s going up again in April, which means millions more will get the boost.
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The new rates will apply after the new tax year starts at the beginning of next month.
They’re due to increase by 3.1% from April 11, adding nearly £300 a year to payments.
And while any increase is welcome, many pensioners will be feeling the squeeze because the rise is lower than inflation, which is currently at a 30-year high of 5.5%.
If inflation outstrips your pay rise, it means you effectively take a pay cut because in real terms your money doesn’t go as far.
The exact amount of state pension you get depends on your age, when you retired, and how much you’ve paid in National Insurance contributions (NICs).
For those getting the maximum under the new system, payments will go up from £179.60 a week to £185.15.
Under the old system the basic state pension will go up from £137.60 to £141.85.
We take a look at how much you could get when it rises in just 20 days’ time.
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How much will I get in state pension?
The way the state pension works changed on April 6, 2016, and it means retirees now fall into one of two categories.
If you reached state pension age before the 2016 date, you get the old state pension – or basic state pension.
But anybody who joined retirement after then is on the new state pension.
The full rate of the new state pension is currently £179.60 per week, but it’s going up to £185.15 on April 11.
That means eligible claimants will get £5.55 extra a week from the date.
To be eligible for that amount you usually need to have built up 35 years of NICs though.
You need at least 10 years to get anything at all, but the lower amount you have will mean a lower amount awarded in state pension.
The old state pension goes up from April 11 too, but how much you get is spit into further categories.
The category A or B basic pensions stand at £137.60 currently, but they’re going up to £141.85 in just days.
To get the full basic state pension you usually need 30 years of NICs but again, if you have less than this then the mount you get will be lower.
The category B (lower) basic pension – which can be dependent on NICs paid by a spouse or civil partner is £82.45 rising to £85.00.
Meanwhile category C or D pensions which make up non-contributory payments will go up from the current £82.45 to £85.00.
If you’ve accrued National Insurance contributions under both the old and new systems, you’ll receive a state pension based on a mix of both.
Plenty of other benefits and payments are set to rise with the start of the new tax year too.
They include tax credits, jobseekers allowance, PIP and more.
Meanwhile Pension credit, for lower income retirees, is due to rise to a maximum of £279 a week in just days too.
You can check all the benefits you’re entitled to by using a free benefits checker.
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